GAO QI. PER ASPERA AD ASTRA

Gao Qi, Chief Representative, China Council for the Promotion of International Trade (CCPIT)

— Mr. Gao, what do you consider the most promising areas for Sino-Rus sian economic cooperation over the next year or two?

— The economic cooperation between China and Russia, based on a high degree of complementarity in technology, markets, and production chains, shows steady growth and holds great potential. Building on the positive momentum in bilateral trade and economy, our cooperation, over the next two years, will not only deepen in traditional sectors—energy, agriculture, and industrial manufac turing—but will also expand into new areas, including cross-border logistics, digital economy, scientific and technological innovation. And alto gether this will open broad prospects for our partnership.

In traditional sectors, cooperation in energy will continue to be the cornerstone of stability. Russia, as a global energy leader, and China, as one of the world’s largest energy consumers, have enormous potential for collaboration in oil and gas exploration and production, pipeline construction, LNG supplies, and renewables. The Chinese agricultural market is experiencing steady growth and strong demand for Russian agricultural goods, with cooperation gradually expanding to include investments, technology exchange, and the integration of production chains. In industrial manu facturing, our partnership is getting to a whole new level—joint R&D, production lines, and third-country markets—creating further avenues for high-quality growth.

In cross-border logistics, the strategic alignment of China’s Belt and Road Initiative with Russia-led Eurasian Economic Union is growing ever closer, unlocking significant potential, particularly in transnational railways, smart logistics platforms, and new logistics services. The Joint Commu niqué of the 30th regular meeting between the Chinese and Russian heads of governments, issued in early November, includes provisions on cooperation in transport, logistics, and border crossings. President Putin has also recently approved the establish ment of transport and logistics hubs at two railway bridge crossings on the China-Russia border. These initiatives not only enhance freight efficiency but also lay the groundwork for the coordinated development of regional production and supply chains.

With that, scientific and techno logical innovation, along with the digital economy, are emerging as new drivers of growth. Backed by strategic planning and political support from the state, engagement in high-tech sectors—such as robotics, virtu alreality, shipbuilding, aerospace—is deepening. Meanwhile, cooperation in IT—artificial intelligence, big data, the Internet of Things, mobile internet, and cloud computing—is poised to further accelerate the growth of the digital economy.

Looking ahead, the economic cooperation between the countries is well-positioned to consolidate the traditional sectors and integrate in novation in new fields, contributing to the prosperity and stability of both economies.

— What new measures to support entrepreneurship and small business in China and Russia would you high light? Despite logistical hurdles and sanctions, the trade and economic partnership between China and Russia continues to strengthen. From energy to digital economy, cooperation between the two powers is getting to a new level, unlocking unprecedented opportunities and addressing global challenges. How do China and Russia see their common future?

— Small and medium-sized enterpris es (SMEs) are a vital driver of growth and a cornerstone of trade and economic cooperation between the two nations. Over recent years, our governments and relevant agencies have rolled out a series of measures to support entrepreneurship and SMEs, while also establishing bilateral mechanisms to foster win-win part nerships among SMEs.

At the policy level, both China and Russia have implemented preferential measures to develop SMEs. China’s Ministry of Industry and Information Technology, which oversees SMEs, continues to pursue targeted digitalisation initiatives, refining its national four-tier SME service system (national, provincial, municipal, and county levels) and conducting “Together for Business” service campaigns. For its part, Russia has launched the federal project “Small and Medium-sized Enterpris es and Support for Individual Entre preneurial Initiatives,” offering tax incentives, financial guarantees, and digitalisation services for startups. Both sides also leverage platforms such as the China-Russia Investment Cooperation Committee to stream line business registration, facilitate cross-border settlements, and protect IP rights, thereby reducing insti tutional transaction costs.

The China Council for the Promo tion of International Trade (CCPIT) plays a unique role in fostering col laboration between SMEs in our two countries, helping businesses expand into new markets and strengthen core competencies through different initiatives. The CCPIT regularly con venes the China-Russia SME Forum, which covers practical cooperation topics across diverse sectors, as well as networking events, negotiations, and signing ceremonies. It also pro vides SMEs with a rich portfolio of tai lored services—trainings, exhibitions, exploratory tours, digital platforms, compliance audits for international operations, and others. The CCPIT remains committed to addressing the needs of SMEs, deepening business exchanges, delivering targeted support, and bringing the collaboration between Russian and Chinese SMEs to a new level.

— What are the primary challenges Chinese companies face today when entering the EAEU?

— Chinese companies expanding into the EAEU markets are currently grappling with three major challenges—secondary sanctions imposed by the West, logistical bottlenecks, and difficulties in cross-border settlement.

Chinese companies seeking to engage in economic cooperation with EAEU member states under interna tional trade rules often face second ary sanctions or “extraterritorial juris diction” imposed by the United States and its allies, which can push them to terminate cooperation, block financing and settlement channels, or with draw from markets in other countries and regions, leading to substantial economic losses and missed oppor tunities. The high risk of secondary sanctions also dampens the enthusi asm and decision-making efficiency of Chinese companies considering entry into EAEU markets. For those already operating in the region, mitigating the risks requires significant investment in compliance systems, which drives up operational costs and creates uncertainty.

Logistical challenges are further largely exacerbated by Western over reach. A number of traditional transit routes have been compromised by sanctions, forcing companies to seek alternatives, which means longer transit and higher costs by as much as 80%. Key border crossings frequently suffer from congestion due to out dated infrastructure or insufficient capacity. As for the EAEU, full har monisation of customs procedures, phytosanitary and veterinary norms, and certification requirements has yet to be achieved. Chinese companies may need to prepare several pack ages of certification documents for the same product, leading to delays in customs clearance and potential cargo hold-ups.

Finally, optimising intermodal transport coordination remains essential. Issues with the “last mile” are particularly acute, as goods arriving by rail can accumulate at terminals due to poor coordination with road transport schedules. The lack of integrated logistics information platforms within the EAEU also hampers end-to-end cargo tracking. While infrastructure is continually being upgraded, cross-border ship ments still remain at the mercy of geographical factors and climate, as well as the work of the border cross ings. Although existing transport coridors have significantly enhanced logistic capacity, there still is room for optimisation, particularly in the “last mile” and intermodal coordination.

When it comes to cross-border settlements, the challenges remain significant despite the growing share of transactions in national currencies between the two countries. The rou ble remains highly volatile, posing substantial currency risks that many SMEs struggle to mitigate, as com mercial partners are often unwilling to assume them. There is also a per sistent risk of transaction failures, as even when payments are made in renminbi, intermediary banks may re ject payment instructions, leading to delays or frozen funds. Local banks within the EAEU often face liquidity shortages in US dollars and euros, complicating the opening or confir mation of letters of credit, thereby exposing Chinese exporters to an even higher risk of non-payment.

— What practical role does the CCPIT play in helping businesses overcome these regional barriers?

— Founded in 1952, it operates both domestically and globally, playing a crucial role in strengthening mutually beneficial ties between Chinese and foreign enterprises, facilitating inter national trade and economic exchanges, and advancing intergovernmental relations. Its work focuses on four key areas, i.e. trade and investment, optimisation and efficiency of commer ciallegal services, active participation in the reform and development of the global economic governance, the establishment of high-level ap plied think tanks. Through political dialogue, exchanges, and enterprise services, we help Chinese and foreign companies engage in high-level inter national operations.

Speaking of economic and trade policy, the CCPIT actively engages in multilateral and bilateral trade and economic cooperation frameworks, such as the Shanghai Cooperation Or ganisation (SCO), and various formats with Russia, Kazakhstan, and Belarus. This strengthens communication and coordination with government bodies and relevant institutions, articulating the concerns of the Chinese business community, shaping trade and economic regulations, and fostering an improved regional business climate.

To facilitate exchanges, the CCPIT convenes high-level events that fos ter international cooperation in supply chains, creating vital venues for Chinese and foreign enterprises to exchange ideas, effectively bridging markets.

At the operational level of en terprise services, the CCPIT provides precise and efficient informational, consultative, and commercial legal services, including regular publication of the Global Trade and Economic Friction Index and business environ ment reports for specific countries and regions, trade and economic cooperation information services, certification services (certificates of or igin, ATA Carnets, and force majeure certificates), professional compliance system development for businesses, IP services (trademarks and patents), alternative dispute resolution in world trade, including international commercial arbitration and media tion, training programmes covering all aspects of international business.

— Which specific sectors or projects in Greater Eurasia are currently the focus of Chinese investment?

— In its trade, economic, and investment cooperation with Eurasia, China adheres to joint consultation, co-con struction, and shared benefits. Its focus rests on key sectors such as in frastructure, energy, manufacturing, and the digital economy, which align closely with the BRI initiative and the national development strategies of partner countries.

Let me outline the priority areas. First is cooperation in manufacturing and production capacity. Chinese in vestments are driving localised production, such as the automotive in dustry in Russia and Kazakhstan and the household appliance production bases in Russia. All this boosts em ployment and facilitates technology transfer.

Second is energy and natural re sources. Chinese companies play a significant role in projects like Russia’s Arctic LNG 2, the development of oil and gas fields in Kazakhstan, and the construction of the Central Asia-China Gas Pipeline (Line D). Concurrently, investments are expanding into renewables, including solar and wind projects, which support the region’s energy transition.

Third is the digital economy and scientific and technological innovation. Chinese companies are collab orating with commercial partners across the EAEU to advance 5G, data centres, and e-commerce platforms. For instance, Alibaba is working with Russian Post to enhance logistics dig italisation, while Huawei is involved in smart city projects across a number of Eurasian countries. Initiatives like the Great Stone China-Belarus Indus trial Park are implementing a range of measures to attract Chinese com panies from high-tech manufacturing, e-commerce, big data, and other cut ting-edge fields. These investments not only improve the quality of life for local populations but also create new economic growth hubs.

— For two consecutive years, you have participated as a speaker at the World Forum “New Era—New Ways.” How effective do you believe this platform is in today’s landscape?

— The World Forum “New Era—New Ways” has emerged as an international platform for dialogue, playing a vital role in advancing the global governance reform and promoting fair and sustainable development in the world economy and society. My personal involvement has allowed me to see its practical efficiency and influence.

Firstly, it brings together competent experts, scholars, and industry leaders from across the globe, ensur ing high-level dialogue. Participants not only highlight the latest trends in their respective fields but also put forward innovative solutions to shared global challenges, significantly enhancing the platform’s interna tional standing.

Secondly, the Forum’s agenda is closely aligned with pressing issues of global development, with a strong emphasis on innovation and inclusivity. In recent years, the event aimed at strengthening regional cooperation has paid particular attention to digital economy, sustainable development, and commercial law. It success fully combines theoretical depth with practical outlook, fostering mutual benefits and policy coherence.

As the Chief Representative of the CCPIT in Russia, it is a great honour to use this platform to share insights about China and advance collabora tive ideas. We will continue to sup port the Forum’s growth and contribute to its mission of fostering confidence-building and consolidation. I am confident that the World Forum “New Era—New Ways” will continue to promote the development of an open world economy.